FXStreet reports that economists at TD Securities think the modest lift to the CAD that followed the release of Canada's employment data is temporary as a lot of good news is in the price.
“The Canadian labour market shifted into a lower gear in October with just 31K jobs added during the month, below the market consensus for 42K, and a fraction of the 157K print for September. However, details were more favourable; job growth was driven by full-time employees (+36k) with an offsetting decline in part-time employment.”
“Unless we see a material surge higher in oil prices, we think dips in USD/CAD will be fairly shallow and short-lived.”
“With some G3 central banks offering more explicit pushback on market pricing for hikes, we think this will reverberate in regions where hawkish pricing looks a bit too aggressive. Taken in conjunction with the CAD being one of the most overbought currencies on our positioning measures, we are comfortable with holding onto our USD/CAD long.